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Does your bank provide SMS alerts for debit card transactions?

From July 2011 the Indian Central Bank (RBI) has made it mandatory for banks to provide SMS alerts for debit card transsactions

August 17, 2011 by Lachlan Gunn — Director, BenAlpin Ltd

From July 2011 the Reserve Bank of India, India's central bank, has made it mandatory for banks in India to provide SMS alerts for debit card transactions, irrespective of the amount. According to an article published by the Times of India, a skimming incident at an Axis Bank ATM was first detected when customers who got SMS alerts of large withdrawals from their accounts, raised the alarm.

SMS alerts are a useful tool in the fight against card fraud and have been used by many banks in Europe for some time now. One of my debit cards is registered for the service and there is something reassuring about the "beep, beep" of an incoming text, shortly after I have used it - and particularly when I am travelling.

But not every bank I use provides the service. In order for the service to be provided, cardholders have to register their mobile phone number with their bank - and not everyone wants to do this. In India, cardholders must ensure that their bank has the number.

There are three key headings in the fight against fraud - Prevention, Detection and Reaction.

Detecting fraud is key to allow quick reaction in order to prevent or minimise losses. Your bank has teams of people working to protect your transactions, and you can assist. If you have an EMV (chip and PIN) card, you can help to prevent fraud by covering your PIN when entering it. No PIN compromise means an immediate limitation on what the fraudster can use to counterfeit your card in the event that it gets skimmed.

As a card holder registered for SMS alerts, you help to detect fraud - if you get a text showing a transaction that you do not recognize, sometimes made in a country where you are not, you can help your bank by letting them know immediately.

India has now made SMS alerts for debit card transactions mandatory, and other countries may follow suit. Does your bank offer SMS alerts for debit card transactions? It might be an idea to ask them...